Posted By : Kishore B.S
Hi Friends !!!
The markets opened with an upward Gap yesterday and moved up nearly 60 points to cross the psychological barrier of 4900, during the initial hours of the session which however turned out to fizzle as the trading progressed.
The closing which was nearly flat reflected the sentiments of the investors and trading community at large which showed that the correction phase is still not completely over and that we could remain in the corrective phase for some more time with the support zone at 4860-4770-4726 and lastly the GAP support level of 4640 which needs to be closely watched out for.
The levels mentioned above have considerable significance since they are the levels when some buying in selective counters cannot be ruled out on the back of value buying opportunities and also cheaper prices going with the Earnings and projections witnessed for the year ahead unless the depreciating Rupee turns out to be the spoilsport.
I have been reiterating the falling markets is a blessing in disguise and should be used to buy into small positions in good Blue chip stocks since the valuations are getting relatively better and cheaper and decent returns in the medium to short term once the mayhem stops cannot be ruled out.
(Inputs: Mr. Hemanth .V, Faculty TA – Stock Market Institute, Bangalore)